ais_intro - maximize margin others seek to maximize value...

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Accounting Information Systems Introduction to AIS: What is business? o Business is a trade/ commercial transactions or engagements o the activity of providing goods and services, typically involving financial, commercial, or industrial aspects What are organizations? How do organizations create value? How are organizations managed? Organizations: o are transmutative [transformative] social entities forming goal-directed structured activity systems o create value through managing their business and information processes o At the heart of managing is the decision-making involved in planning, executing, controlling, monitoring and evaluating the organization's business and information processes. What do organizations do? o Everything an organization does should contribute to the creation of value for its customers o " Margin " can be defined as the difference between value and costs; however, this includes ALL value and ALL costs o For-profit organizations seek to
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Unformatted text preview: maximize margin : others seek to maximize value within the constraints of their resources Describe common business processes. Organizations have three main business processes: 1. acquisition/expense/payment process 2. conversion process 3. sale/collection process Give three types of information processes. Information processes include: o Recording o Maintaining o Reporting Change : the only constant in business o Downsizing and rightsizing o Business process-re-engineering o Information superhighway- future of computers accessing and communicating over a world-wide network o Dissatisfaction with quality and timeliness of accounting information o Expectation gap- In accounting, is the gap between an auditor’s actual standard of performance and the more rigorous public expectation of what an auditor’s performance should be o ENRON, WORLDCOM, Sarbanes-Oxley, etc. [protect businesses and consumers]...
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